Scammers Steal $2M by Building Fake GIWA Blockchain
Fraudsters created a counterfeit GIWA blockchain and lured 1,333 wallets to deposit 767 ETH, worth approximately $2 million, before draining the funds. The fake network mimicked GIWA's planned Layer 2 with a functioning RPC endpoint, cross-chain bridge, and authentic-looking chain identifier.
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The Counterfeit Network
Scammers built a fake GIWA blockchain that replicated the infrastructure of the legitimate Upbit-backed Layer 2 project. The fraudulent network included a working RPC endpoint, a cross-chain bridge, and used Chain ID 9134—the identifier tied to GIWA's actual mainnet. The fake network's authenticity was convincing enough to attract 1,333 unique wallets into depositing funds.
How the Theft Unfolded
Victims deposited a total of 767 ETH into the fake GIWA blockchain over an unspecified timeframe. Before the scam was detected and halted, attackers drained nearly all of the stolen funds. At current prices, the 767 ETH represented approximately $2 million in losses. The incident underscores how convincingly scammers can now replicate blockchain infrastructure, including network endpoints and cross-chain mechanics.
Broader Security Implications
The attack highlights gaps in user verification practices and the ease with which fraudsters can clone critical network components. No official statement from GIWA or Upbit has been reported regarding steps taken to help victims or verify users of legitimate services. Security researchers and blockchain platforms have not yet announced specific measures to prevent similar attacks, though the incident signals an urgent need for improved verification mechanisms and user education around confirming authentic network identifiers before depositing funds.
Why It Matters
For Traders
Exercise caution when interacting with newly launched Layer 2 networks; verify chain IDs and official bridge contracts directly from team communication channels before depositing.
For Investors
The attack demonstrates a significant gap in onboarding security for emerging Layer 2 projects and may influence how exchanges and platforms vet new blockchain launches.
For Builders
Layer 2 teams should implement standardized verification mechanisms (ENS domains, multi-sig governance confirmations, or official bridge registries) to help users distinguish legitimate from counterfeit networks.
This article is for information only and is not financial advice. Read the full disclaimer.
